Savola deposits Almarai shares into shareholders' portfolios

Logo of Savola Group

Savola Group deposited Almarai Co.'s shares today, Dec. 19, into the portfolios of eligible shareholders as compensation for the cancellation of shares resulting from the capital reduction and the significant transaction.

In a statement to Tadawul, the company said that 0.3044 Almarai shares will be distributed for each Savola share held by eligible shareholders as of Dec. 1 (before the capital reduction).

Fractional shares of Savola, resulting from the capital reduction, and fractional shares of Almarai, resulting from the distribution-in-kind, will be combined into a single portfolio. These fractional shares will then be sold in the market at the prevailing price.

The proceeds from the sale will be distributed to eligible shareholders based on their holdings within 30 days from the date of the EGM’s approval of the capital reduction and the significant transaction, the statement added.

Savola announced that its shareholders also approved the board's recommendation to distribute the company’s entire stake in Almarai as an in-kind dividend to eligible shareholders. This distribution comprises 345.22 million ordinary shares, representing 34.52% of Almarai’s capital.

- Shares in Almarai worth SAR 8.33 billion will be distributed (the exact number of shares will be determined on the actual record date). This will represent compensation resulting from the capital reduction of Savola. The remaining shares in Almarai owned by Savola will be distributed through retained earnings as in-kind dividends.

- The distribution will be carried out on a pro rata basis and the ratio will be calculated through dividing Savola's 345.22 million ordinary shares in Almarai by Savola’s total outstanding shares of 1.13 billion. As a result, shareholders will receive 0.3044 Almarai shares for each Savola share owned.